FHA Low Rate At 3%

October 17th, 2012 Author:

FHA Mortgage Rates : Approaching 3.00 Percent

The Federal Housing Administration is a government agency, created in 1934. It serves three primary purposes : (1) That is, to improve housing standards related to home-loans, (2) To stabilize the mortgage market, whatever that means and (3) To insure mortgage loans, which means actually backed by the taxpayer.

It is important to remember that the FHA claims that they do not make loans directly. For example, it doesn’t lend money to home buyers or give money for a refinance type of loan. Rather, the FHA insures the loans that mortgage lenders make, again remember the tax payer exemption, so long as those loans meet the FHA’s minimal mortgage home loan guidelines.

FHA purchase mortgage guidelines are similar to conventional mortgage guidelines :

Annual income is verified with W-2 statements and tax returns. Remember, no more STATED or NINA loans
Monthly debts are verified via a credit report and personal statements. No more bank account statements showing cash flow deposits
Employment and assets are verified prior to closing

However, the FHA tends to be more easy with respect to who gets approved. The FHA will often insure the reason-ability test on loans that Fannie Mae or Freddie Mac turn down as a matter of policy, and it does so without charging high mortgage rates.

FHA mortgage rates have been under 4 percent since January 2012.

Fannie Mae Stream Line Loan Modification Program

November 12th, 2008 Author:


                   Fannie Mae unveils the broad sketches of a new loan modification program today in an attempt to stem the cascading effect of mortgage foreclosures nationwide. FHFA Director James B. Lockhart, the regulator of Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE) and the Federal Home Loan Banks, announced a simplified, streamlined loan modification program to help troubled borrowers get affordable monthly payment. The program will start December 15, 2008 and details of the program are still very sketchy. It will be interesting to see whether government pressure will force investors to modify loans at rates below market. Speculation from one news anchor on CNBC opined as to whether rates could be possibly as low as 3% because that would be the only way to make the loans afforable since many home owners may not qualify for the 38% DTI ratio required by the program.  That is, home payment, including homeowner association dues, could be no more than 38 % of the household’s monthly gross income. As such, principal foregiveness may be a secondary measure to allow these borrower’s to qualify.

FHA 203-K Renovation and Rehab Loan

October 31st, 2008 Author:
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Reverse Mortgage Learning

October 16th, 2008 Author:
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Elimination of Down Payment Assistance Program

August 15th, 2008 Author:
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Suze Orman on Reverse Mortgages

September 21st, 2007 Author:
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